I read that Canada and EU now have a free trade agreement. Does this mean that as a private person, if I order some goods online, like a laptop, or a TV, or anything will be VAT free if it comes to the EU?
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18I’m voting to close this question because it’s not about travel.– MJeffryesCommented Oct 26, 2020 at 22:46
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It is about travelling of goods :D but it is just as applicable if you are the courier yourself and taking home stuff from Canada or the EU...– giorgio79Commented Oct 27, 2020 at 5:46
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Fyi VAT applies to goods made and bought within the EU including within a single country, so there's no reason it wouldn't apply to imports/exports.– ErwanCommented Oct 27, 2020 at 11:41
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FWIW, even travelling within the EU sometimes you have to pay VAT - not all of the EU is in the EU VAT Area...– CMasterCommented Oct 27, 2020 at 11:43
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1"if you are the courier yourself and taking home stuff from Canada or the EU" - that's very different from the actual question: "if I order some goods online..."– Dmitry GrigoryevCommented Oct 27, 2020 at 12:28
2 Answers
No, the CETA free trade agreement applies to duty/tarifs not VAT.
VAT is consumer tax and when you are the final consumer, you must pay that tax.
Canada-European Union Comprehensive Economic and Trade Agreement (CETA)
ImportantTaxes. CETA applies to duties, but not taxes; therefore, any applicable GST/HST for imports into Canada, and any applicable VAT for exports to the EU, will be assessed accordingly. For VAT rates and details, visit the European Commission website.
Sources:
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You normally wouldn't have to pay Canadian GST (/HST) since the goods are exported from Canada.– Flydog57Commented Oct 27, 2020 at 18:12
- GST/HST/PST should never be charged on goods being exported from Canada (the vendor would get an input tax credit).
- Depending on the goods, Duty/Tariff/Excise may be applicable upon import to the EU (this is regulated by CETA).
- VAT (which is the EU equivalent of Canadian GST/HST) would be payable by the buyer upon import to the EU.